Crypto bear market
Crypto entered a bear market in July when it's total market cap dropped - 20%. TOTAL March high of 2.721T down to the August low of 1.691T was - 38%, but it bounced back up. So now, heading into September, we are only down - 25% at 2.036T. However, as a trader we can use some of the key levels that have printed on the chart to go long or short according to positioning. I see 5 main levels to pay attention to:
1) 2024 high = 2.721T
2) 2024 - 20% = 2.169T
3) August low = 1.691T
4) Down trend channel top = 2.314T
5) Down trend channel bottom = 1.868T
TOTAL has made lower lows and lower highs since March. The strongest trend to trade long or short off of since March is to go long crypto off TOTAL down trend channel bottom in green and go short off TOTAL down trend channel top in red. Anything in between is not high probability. But, also now that we have a confirmed crypto bear market printed on the chart, the 2024 - 20% = 2.169T level will act as serious resistance too.
A bear market is a downward trend in financial markets, indicating a weakening economy and a loss of investor confidence. Generally, a market is considered a bear market when prices have declined more than 20%. Bear markets can be as short as a few weeks or as long as a several years. Until there is confirmation of TOTAL breaking out of the crypto bear market, we have to accept the fact that we are in it for an unknow period of time.
1) 2024 high = 2.721T
2) 2024 - 20% = 2.169T
3) August low = 1.691T
4) Down trend channel top = 2.314T
5) Down trend channel bottom = 1.868T
TOTAL has made lower lows and lower highs since March. The strongest trend to trade long or short off of since March is to go long crypto off TOTAL down trend channel bottom in green and go short off TOTAL down trend channel top in red. Anything in between is not high probability. But, also now that we have a confirmed crypto bear market printed on the chart, the 2024 - 20% = 2.169T level will act as serious resistance too.
A bear market is a downward trend in financial markets, indicating a weakening economy and a loss of investor confidence. Generally, a market is considered a bear market when prices have declined more than 20%. Bear markets can be as short as a few weeks or as long as a several years. Until there is confirmation of TOTAL breaking out of the crypto bear market, we have to accept the fact that we are in it for an unknow period of time.
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Fib retracement on the monthly chart:
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It's a high probability crypto TOTAL will have a bullish breakout because the Fed rate cut cycle has begun with 50 basis points.
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